FCX, Inc. v. South Carolina Tax Commission

Bell, Judge:

This is an action by FCX, Inc., a farmers’ cooperative, for a refund of income taxes paid under protest.1 FCX seeks to exclude from its taxable income the amount of patronage refunds issued to its members in the form of certificates of equity. The circuit court held the refunds were not excludable and denied relief. We affirm.

FCX is organized and incorporated as a non-profit association under the Cooperative Marketing Act of North Carolina, N. C. Gen. Stat. § 54-129 et seq. (1975). It purchases or manufactures farm supplies and equipment for resale to its members and nonmember…